Capital markets
Equity and joint ventures
When debt alone does not close the deal, the next question is who else belongs in it, and on what terms. We help sponsors and operators think through joint venture structures before they sit down with a capital partner.
Request financingBrokered by eXp Commercial, LLC · CCGX arranges and advises on financing; loans are provided by third-party lenders · Subject to lender approval · Not a commitment to lend
What it is
Structuring partnerships between sponsors, operators and capital partners.
Equity is the ownership capital in a deal. A joint venture pairs parties who bring different things, commonly a sponsor or operator who brings the deal and the expertise, and a capital partner who brings most of the cash.
In healthcare real estate, joint ventures often pair an experienced operator with an investor who wants exposure to the asset without running it. How control, economics and the operating agreement are set up matters as much as the money.
When it fits
Signs this is the right tool.
- The equity requirement is larger than the sponsor wants to fund alone.
- An operator wants to grow without carrying all of the capital.
- An investor wants exposure to an asset class it does not operate.
- A development or value-add plan needs patient capital ahead of debt.
Typical structure
How it is usually put together.
Described in general terms. Actual structure, pricing, leverage and terms are set by each lender or capital partner for each transaction.
- Common equity
- Ownership capital split between partners, with economics defined in the operating agreement.
- Preferred return and distribution waterfall
- How cash is distributed: who is paid first, and how profits are shared above defined hurdles.
- Preferred equity
- Capital that sits between debt and common equity, with priority over common equity and less control than an owner.
- Governance
- Major decision rights, operator replacement, buy-sell provisions and the exit. These are negotiated, not standard.
Underwriting
What lenders look for in healthcare real estate.
Senior housing and behavioral health carry licensing and operating risk that a lender reads alongside the real estate.
- Who controls the borrower
- Lenders want to know who makes decisions and who signs guaranties when ownership is shared.
- Operator alignment
- Whether the operator has meaningful ownership or incentives tied to the property's performance.
- Capital partner strength
- The capital partner's liquidity and ability to fund future needs.
- Intercreditor terms
- Where preferred equity or mezzanine capital is involved, how it interacts with the senior loan.
Process
How we work it.
- 01
Define the need
How much capital, for how long, and what the sponsor is willing to give up in control and economics.
- 02
Frame the structure
Common, preferred or a combination, and the governance terms that matter most to you.
- 03
Prepare the materials
Property information, business plan and sponsor background for discussion with prospective partners.
- 04
Coordinate with counsel
Partnership documents are drafted and negotiated by the parties and their own legal and tax advisors.
Next step
Request a capital review.
Tell us about the property and what the capital is for. A CCGX advisor will review it confidentially and tell you what looks financeable and roughly where.
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